Wonderla Holidays

(nerolu_praveen) #289

Thats the best way to give investor confidence when nothing else works :wink: On a lighter note!!

With promoter holding > 70% and 0.47% dividend yield, dividend received itself is > 3Cr

(Abhishek) #290

I think one has to look at the business with perspective that a new park has opened in 2016 (adding to costs - it takes a couple of years to drive footfall and break even) and then immediately 6 months later in 2017 they have been hit by a sudden GST 28% increasing their ticket prices beyond what can be absorbed. They have somehow managed to continue to generate healthy cash flows and despite the head winds managed to maintain it over the last 3 years (add back depreciation to PAT and you will see that it has only gone up). In a more stable operating environment with GST rates now normalised, I would expect the mature parks to absorb inflationary costs through ticket price increases and better F&B sales and hyderabad park to drive growth. The parks continue to be loved as before as evidenced by their rating on tripadvisor.

(Vivek) #291

Seems a step to attract more footfalls : wonderpass

(..pd..) #292

(GSrikan) #293

Saw an AC Volvo bus today in Bangalore “Wonderla - ITPL”. Surely not a chartered bus. Seems to be for public only as they were taking passengers. Although it’s not got make any material difference to wonder la finances, it is step in right direction. It facilitates Bangalore locals hassle free (cab booking, availability etc) transport to visit Wonderla. Not sure about ticket cost though.

Adlabs Ev seems to have come to 1300 cr with gross block of 1500 cr(?). If it goes to nclt (wild guess) Wonderla can think about buying it below 1000 cr. Though it will be a risky proposition. What are the odds for this to happen?

Disc: Invested

(Vivek) #294

Poor numbers from Wonderla, no wonder stock was going down to 2015 levels

presentation: https://www.bseindia.com/xml-data/corpfiling/AttachLive/09412f36-bb31-454c-b7d0-1b847dbeb67b.pdf

Kochi park witnessed 61% decline in footfalls leading to 57% drop in revenues (rains and flood impact)

(anandrkris) #295

I believe, this decline was expected and seems that it is factored in CMP .

Other signs of worry include delay in Chennai Park completion due to additional entertainment tax by TN Govt and resignation of their CFO N. Nandakumar.

Also more granular details from Investor Meet presentation.

Disc: Invested

(Jay Badiyani) #296

Wonderla seems like a very lousy business which comes up with reason after reason to justify stangating revenues and promising higher growth next time. Even barring Kochi effect, their most recent park Hyderabad which should have footfalls headed up and not down has footfalls coming down . I wonder what prof Bakshi saw in this business and bought it at 350 + levels

(Karthikraja K) #297

Difficult to push peoples into park.

(Abhishek) #298

Anybody knows how the share capital went up from 346crore to 684crore from March 2016 to March 2017. The annual report of March 2017 shows a much lower figure but the share capital figure for March 2017 magically increases to 700 crore + in the 2018 annual report.

(Bheeshma Sanghani, PhD) #299

Not sure if you should evaluate wonderla on q2 show as its a non core quarter for it. Its definitely not a lousy business however its not a great business either. Its a well managed co in a very difficult industry to operate in run by conservative promoters. However due to inflation , incremental investments in new parks carry with it lower return on capital and a longer breakeven. The other risks have been highlighted earlier. If the Chennai park was up and running perhaps the perception about wonderla would be different. As far as footfalls are concerned, mature parks have lower footfall growth compared to newer ones and all growth in footfalls tops out as it should. I think they need a different pricing model to the one they have currently. My sense is that the one ticket for all rides may not be the best going forward.

Last but not the least, cos are not obliged to deliver fireworks yoy. They have a business to run and they are running it as well as they can managing the inherent risks. Once they crack the pricing puzzle it will be an interesting investment


(Bheeshma Sanghani, PhD) #300

Hi @am648

Land was revalued. The increase is due to the increase in the revaluation reserve.

(Ashish) #301

This year the Dussera / Diwali vacations moved to October and hence Q2 was without any vacation period…despite that Bangalore footfalls have risen, resort did better too. Kochi was on expected lines. Overall after reading granular details in the presentation, results are not as bad as front line numbers indicated. Revenue person have increased across the portfolio.

Concerns: Delay in Chennai park and non performance of Hyderabad park.

I will watch the company for 2 more quarters before taking a final call on exiting.

Disc: Invested since IPO, added till Rs. 250 earlier and added more last week.

(niraj.dugar) #302

In case anyone attended the concall, what did the management mention about the progress in Chennai park?

(Abhishek) #303

Pardon me for the basic question but isnt revaluation of land supposed to reflect in the P&L as gains?

Is the fixed asset increased by the same amount as share equity without any P&L impact?

Why would they want to make such a move? Is it mandatory by accounting standards? All it does is reduce its return ratios!

(Bheeshma Sanghani, PhD) #304

No its not necessary to route it through P&L. Its a direct equity adjustment. Not sure if its mandatory or not but i think it had something to do with accounting standards.

(amit) #305

any one has Q2 earnings call transcript. Any news on Chennai or other location project plan.

(anandrkris) #306

(Gorthi) #307

Yes it is in line with Accounting Standards…

Revaluation of Fixed Assets can’t charged to P&L account, rather it should be shown as Increase under revaluation reserve account as Balance Sheet item which is part of Equity…

(aravindaryan) #308

Good interview with the promoter. Amazing man, Chittilappally !